Tuesday, 28 March 2017

vix warning - vix warning

in the news vix warning - vix warning? What this all about..... See below. ------------------------------Sentiment Trader analysis of the recent VIX action is clearly warning of a potentially massive price volatility increase in the US and global markets. Many traders use and trade the VIX as a measurement of volatility. The VIX is a measurement of the expected market volatility over the next 30 days. As the VIX rises, traders expect larger and more volatile price swings. As the VIX declines, traders expect smaller and more narrow price swings.

Currently, the VIX is near historical low levels and has recently past a critical cycle midpoint.

the thing about this is investors think the market will keep rallying and the vix will stay low, but when you look back in history this almost never happens, so we think there is a bigger sell off coming, that you need to look out for. This is quite interesting.